region. We find that features of a country associated with more trade with either Japan or the United States also tend to be … associated with more DFI from Japan or the United States. U.S. economic relations with Japan and Western Europe provide an … important exception. Despite U.S. concern about its trade deficit with Japan, we find Japan to be much more open to the United …

opposite tendency. Taking population, per capita income, factor endowments, and distance into account, we find Japan to be more … open to U.S. exports than any region in the world except East Asia …